State Department awards $636M for London Embassy Construction to BL Harbert International
Contract Overview
Contract Amount: $635,959,817 ($636.0M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of State
Start Date: 2012-04-11
End Date: 2018-01-31
Contract Duration: 2,121 days
Daily Burn Rate: $299.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES FOR NEW EMABSSY COMPOUND IN LONDON, ENGLAND. IGF::OT::IGF
Plain-Language Summary
Department of State obligated $636.0 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION SERVICES FOR NEW EMABSSY COMPOUND IN LONDON, ENGLAND. IGF::OT::IGF Key points: 1. Significant investment in diplomatic infrastructure. 2. BL Harbert International is a major player in large-scale construction. 3. Long contract duration (2121 days) presents potential for cost overruns. 4. Fixed-price contract aims to control costs, but scope creep is a risk.
Value Assessment
Rating: fair
The total award of $635,959,817.39 for a new embassy compound is substantial. Benchmarking against similar large-scale international construction projects is difficult without more granular cost data, but the scale suggests significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. The firm fixed-price structure was intended to provide cost certainty, but the long duration and complexity of the project could still lead to challenges in price discovery and management.
Taxpayer Impact: Taxpayer funds are being used for a critical diplomatic facility. While competition is intended to ensure value, the large sum necessitates careful oversight to prevent waste.
Public Impact
Enhances U.S. diplomatic presence and security in a key global capital. Supports economic activity through construction jobs and material sourcing. Represents a long-term commitment to international relations and foreign policy objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of unforeseen costs.
- Potential for scope creep on a large, complex project.
- Geopolitical risks associated with international construction.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost control mechanism.
- Addresses critical need for modern diplomatic infrastructure.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Large-scale government construction projects, especially for diplomatic facilities, often involve significant budgets and long timelines, requiring specialized expertise and robust oversight.
Small Business Impact
The data indicates this was a large prime contract awarded to BL Harbert International LLC. There is no specific information provided regarding small business participation or subcontracting goals within this award.
Oversight & Accountability
The Department of State, as the contracting agency, is responsible for oversight. The long duration and significant value of this contract would typically warrant robust project management, regular progress reviews, and audits to ensure accountability and adherence to contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Contract Duration
- Project Complexity
- International Operations
- Potential for Cost Overruns
- Scope Creep Risk
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $636.0 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION SERVICES FOR NEW EMABSSY COMPOUND IN LONDON, ENGLAND. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $636.0 million.
What is the period of performance?
Start: 2012-04-11. End: 2018-01-31.
What was the final cost compared to the initial bid, and were there significant change orders?
The provided data shows the total award amount but not the initial bid or details on change orders. A thorough review would examine the final expenditure against the original contract value and analyze the justification and cost impact of any modifications to assess true value for money.
What specific risks were identified during the bidding process for this international construction project?
While the data indicates 'full and open competition,' it doesn't detail specific risks identified. Typical risks for such projects include currency fluctuations, local labor laws, material availability, security concerns, and differing building codes. The agency should have a risk mitigation plan in place.
How effectively did the firm fixed-price contract manage cost escalation over the project's multi-year duration?
The firm fixed-price nature aims to cap costs, but effectiveness depends on the initial pricing accuracy and management of scope. Without post-award data on cost performance and change orders, it's difficult to definitively assess effectiveness. The long duration inherently increases the challenge of maintaining cost control.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: B.L. Harbert Holdings, L.L.C. (UEI: 147371236)
Address: 820 SHADES CREEK, BIRMINGHAM, AL, 35209
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $635,986,829
Exercised Options: $635,986,829
Current Obligation: $635,959,817
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $926,508
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-11
Current End Date: 2018-01-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2021-08-24
More Contracts from BL Harbert International LLC
- TAS::19 0535 000::TAS NEW Embassey Compound and Housing, Islamabad, Pakistan — $871.5M (Department of State)
- Base Award for Construction Manager AS Constructor Clin-001 for Design-Phase Services for Hanoi NEC — $815.9M (Department of State)
- Beirut, Lebanon NEW Embassy Constructionigf::cl::igf — $731.6M (Department of State)
- Construction Services for the NEW Embassy Compound in NEW Delhi, India — $685.1M (Department of State)
- NEC - Kinshasa Republic of Congo — $534.4M (Department of State)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)